Development strategy for Financial sector to be prepared

The government has said the second phase of the finance sector development strategy would be prepared in the coming fiscal year and brought into implementation.

The budget has incorporated various issues including further strengthening government owned banks and financial institutions by re-restructuring, facilitating access to capital for investment by reducing financial intermediary cost, strengthening regulation of financial sector by developing capacity of regulatory bodies, and promoting digital and mobile banking transactions.

Similarly, Acts related to financial sectors including Nepal Rastra Bank Act, Banks and Financial Institutions Act would be revised and amended.

The budget mentioned to associate those sending remittance through official medium in social security fund. Likewise, programmes related to interest grants of concessional loan would be restructured.

A total of Rs 115.9 billion has been allocated for interest grant of concessional loan as well as microfinance institutions should be forwarded as a specialized provincial institution.

The budget would make arrangements for non-resident Nepalis to invest in hydropower projects enlisted in the stock market, running programmes to make access of insurance at rural areas and encouraging institutional investors in share market.